Poringland leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Poringland enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Poringland you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Poringland flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Poringland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ali was the the leasehold proprietor of a 2 bedroom apartment in Poringland being sold with a lease of a little over 59 years unexpired. Ali on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Ali to invoke his statutory right. Ali procured expert advice and secured an acceptable deal informally and sell the flat.
In 2012 we were called by Mrs Hannah David who, having acquired a ground floor flat in Poringland in October 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Poringland with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expiry date was on 14 June 2103. Having 77 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
Last Christmas we were e-mailed by Mr and Mrs. T Baker , who bought a basement flat in Poringland in January 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Poringland with an extended lease were valued around £183,600. The average amount of ground rent was £65 collected annually. The lease elapsed on 11 September 2083. Given that there were 57 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.